The EU Council approved conclusions on tax incentives to promote clean technologies and industry as part of the bloc’s Clean Industrial Deal. The conclusions respond to a Commission recommendation published on 2 July 2025, which proposed targeted tax credits and accelerated depreciation to support industrial decarbonisation and the adoption of clean technologies.

The Clean Industrial Deal, a flagship initiative of the Competitiveness Compass, aims to strengthen Europe’s competitiveness and position the EU as an attractive manufacturing hub while promoting circular business models. In its conclusions, the Council emphasized the need to reignite economic dynamism, enhance competitiveness, and build resilience. It welcomed the Commission’s recommendation, noting that tax incentives should remain simple for companies and tax authorities, given differences across national tax systems.

The Council stressed flexibility, allowing member states to design, implement, and apply incentives according to their specific situations and budgetary considerations. It also encouraged evaluation of existing measures and the exchange of best practices among member states to support clean energy, industrial decarbonisation, and technology development.